-CITE-
26 USC CHAPTER 3 - WITHHOLDING OF TAX ON NONRESIDENT
ALIENS AND FOREIGN CORPORATIONS 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 3 - WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN
CORPORATIONS
-HEAD-
CHAPTER 3 - WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN
CORPORATIONS
-MISC1-
Subchapter Sec.(!1)
A. Nonresident aliens and foreign corporations 1441
B. Application of withholding provisions 1461
AMENDMENTS
1984 - Pub. L. 98-369, div. A, title IV, Sec. 474(r)(29)(B), (C),
July 18, 1984, 98 Stat. 844, struck out "AND TAX-FREE COVENANT
BONDS" after "FOREIGN CORPORATIONS" in heading of chapter 3, and
struck out item for subchapter B "Tax-free covenant bonds" and
redesignated the item for subchapter C as B.
-SECREF-
CHAPTER REFERRED TO IN OTHER SECTIONS
This chapter is referred to in sections 864, 896, 6414, 6501,
6513, 6724, 7851 of this title.
-FOOTNOTE-
(!1) Section numbers editorially supplied.
-End-
-CITE-
26 USC Subchapter A - Nonresident Aliens and Foreign
Corporations 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 3 - WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN
CORPORATIONS
Subchapter A - Nonresident Aliens and Foreign Corporations
-HEAD-
SUBCHAPTER A - NONRESIDENT ALIENS AND FOREIGN CORPORATIONS
-MISC1-
Sec.
1441. Withholding of tax on nonresident aliens.
1442. Withholding of tax on foreign corporations.
1443. Foreign tax-exempt organizations.
1444. Withholding on Virgin Islands source income.
1445. Withholding of tax on dispositions of United States
real property interests.
1446. Withholding of tax on foreign partners' share of
effectively connected income.
AMENDMENTS
1988 - Pub. L. 100-647, title I, Sec. 1012(s)(1)(C), Nov. 10,
1988, 102 Stat. 3527, substituted "Withholding of tax on foreign
partners' share of effectively connected income" for "Withholding
tax on amounts paid by partnerships to foreign partners" in item
1446.
1986 - Pub. L. 99-514, title XII, Sec. 1246(c), Oct. 22, 1986,
100 Stat. 2582, added item 1446.
1984 - Pub. L. 98-369, div. A, title I, Sec. 129(a)(2), July 18,
1984, 98 Stat. 659, added item 1445.
1983 - Pub. L. 97-455, Sec. 1(d)(2), Jan. 12, 1983, 96 Stat.
2498, added item 1444.
-SECREF-
SUBCHAPTER REFERRED TO IN OTHER SECTIONS
This subchapter is referred to in sections 33, 3405, 6049 of this
title.
-End-
-CITE-
26 USC Sec. 1441 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 3 - WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN
CORPORATIONS
Subchapter A - Nonresident Aliens and Foreign Corporations
-HEAD-
Sec. 1441. Withholding of tax on nonresident aliens
-STATUTE-
(a) General rule
Except as otherwise provided in subsection (c), all persons, in
whatever capacity acting (including lessees or mortgagors of real
or personal property, fiduciaries, employers, and all officers and
employees of the United States) having the control, receipt,
custody, disposal, or payment of any of the items of income
specified in subsection (b) (to the extent that any of such items
constitutes gross income from sources within the United States), of
any nonresident alien individual or of any foreign partnership
shall (except as otherwise provided in regulations prescribed by
the Secretary under section 874) deduct and withhold from such
items a tax equal to 30 percent thereof, except that in the case of
any item of income specified in the second sentence of subsection
(b), the tax shall be equal to 14 percent of such item.
(b) Income items
The items of income referred to in subsection (a) are interest
(other than original issue discount as defined in section 1273),
dividends, rent, salaries, wages, premiums, annuities,
compensations, remunerations, emoluments, or other fixed or
determinable annual or periodical gains, profits, and income, gains
described in section 631(b) or (c), amounts subject to tax under
section 871(a)(1)(C), gains subject to tax under section
871(a)(1)(D), and gains on transfers described in section 1235 made
on or before October 4, 1966. The items of income referred to in
subsection (a) from which tax shall be deducted and withheld at the
rate of 14 percent are amounts which are received by a nonresident
alien individual who is temporarily present in the United States as
a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section
101(a)(15) of the Immigration and Nationality Act and which are -
(1) incident to a qualified scholarship to which section 117(a)
applies, but only to the extent includible in gross income; or
(2) in the case of an individual who is not a candidate for a
degree at an educational organization described in section
170(b)(1)(A)(ii), granted by -
(A) an organization described in section 501(c)(3) which is
exempt from tax under section 501(a),
(B) a foreign government,
(C) an international organization, or a binational or
multinational educational and cultural foundation or commission
created or continued pursuant to the Mutual Educational and
Cultural Exchange Act of 1961, or
(D) the United States, or an instrumentality or agency
thereof, or a State, or a possession of the United States, or
any political subdivision thereof, or the District of Columbia,
as a scholarship or fellowship for study, training, or research
in the United States. In the case of a nonresident alien
individual who is a member of a domestic partnership, the items
of income referred to in subsection (a) shall be treated as
referring to items specified in this subsection included in his
distributive share of the income of such partnership.
(c) Exceptions
(1) Income connected with United States business
No deduction or withholding under subsection (a) shall be
required in the case of any item of income (other than
compensation for personal services) which is effectively
connected with the conduct of a trade or business within the
United States and which is included in the gross income of the
recipient under section 871(b)(2) for the taxable year.
(2) Owner unknown
The Secretary may authorize the tax under subsection (a) to be
deducted and withheld from the interest upon any securities the
owners of which are not known to the withholding agent.
(3) Bonds with extended maturity dates
The deduction and withholding in the case of interest on bonds,
mortgages, or deeds of trust or other similar obligations of a
corporation, within subsections (a), (b), and (c) of section 1451
(as in effect before its repeal by the Tax Reform Act of 1984)
were it not for the fact that the maturity date of such
obligations has been extended on or after January 1, 1934, and
the liability assumed by the debtor exceeds 27 1/2 percent of
the interest, shall not exceed the rate of 27 1/2 percent per
annum.
(4) Compensation of certain aliens
Under regulations prescribed by the Secretary, compensation for
personal services may be exempted from deduction and withholding
under subsection (a).
(5) Special items
In the case of gains described in section 631(b) or (c), gains
subject to tax under section 871(a)(1)(D), and gains on transfers
described in section 1235 made on or before October 4, 1966, the
amount required to be deducted and withheld shall, if the amount
of such gain is not known to the withholding agent, be such
amount, not exceeding 30 percent of the amount payable, as may be
necessary to assure that the tax deducted and withheld shall not
be less than 30 percent of such gain.
(6) Per diem of certain aliens
No deduction or withholding under subsection (a) shall be
required in the case of amounts of per diem for subsistence paid
by the United States Government (directly or by contract) to any
nonresident alien individual who is engaged in any program of
training in the United States under the Mutual Security Act of
1954, as amended.
(7) Certain annuities received under qualified plans
No deduction or withholding under subsection (a) shall be
required in the case of any amount received as an annuity if such
amount is, under section 871(f), exempt from the tax imposed by
section 871(a).
(8) Original issue discount
The Secretary may prescribe such regulations as may be
necessary for the deduction and withholding of the tax on
original issue discount subject to tax under section 871(a)(1)(C)
including rules for the deduction and withholding of the tax on
original issue discount from payments of interest.
(9) Interest income from certain portfolio debt investments
In the case of portfolio interest (within the meaning of
section 871(h)), no tax shall be required to be deducted and
withheld from such interest unless the person required to deduct
and withhold tax from such interest knows, or has reason to know,
that such interest is not portfolio interest by reason of section
871(h)(3) or (4).
(10) Exception for certain interest and dividends
No tax shall be required to be deducted and withheld under
subsection (a) from any amount described in section 871(i)(2).
(11) Certain gambling winnings
No tax shall be required to be deducted and withheld under
subsection (a) from any amount exempt from the tax imposed by
section 871(a)(1)(A) by reason of section 871(j).
(d) Exemption of certain foreign partnerships
Subject to such terms and conditions as may be provided by
regulations prescribed by the Secretary, subsection (a) shall not
apply in the case of a foreign partnership engaged in trade or
business within the United States if the Secretary determines that
the requirements of subsection (a) impose an undue administrative
burden and that the collection of the tax imposed by section 871(a)
on the members of such partnership who are nonresident alien
individuals will not be jeopardized by the exemption.
(e) Alien resident of Puerto Rico
For purposes of this section, the term "nonresident alien
individual" includes an alien resident of Puerto Rico.
(f) Continental shelf areas
For sources of income derived from, or for services performed
with respect to, the exploration or exploitation of natural
resources on submarine areas adjacent to the territorial waters
of the United States, see section 638.
(g) Cross reference
For provision treating 85 percent of social security benefits
as subject to withholding under this section, see section
871(a)(3).
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 357; Aug. 26, 1954, ch. 937,
title V, Sec. 544(f), as added July 18, 1956, ch. 627, Sec. 11(a),
70 Stat. 563; amended Pub. L. 85-141, Sec. 11(b)(1), Aug. 14, 1957,
71 Stat. 365; Pub. L. 85-866, title I, Sec. 40(b), Sept. 2, 1958,
72 Stat. 1638; Pub. L. 87-256, Sec. 110(d), Sept. 21, 1961, 75
Stat. 536; Pub. L. 88-272, title III, Sec. 302(c), Feb. 26, 1964,
78 Stat. 146; Pub. L. 89-809, title I, Sec. 103(h), Nov. 13, 1966,
80 Stat. 1553; Pub. L. 91-172, title V, Sec. 505(b), Dec. 30, 1969,
83 Stat. 634; Pub. L. 92-178, title III, Sec. 313(a), (d), Dec. 10,
1971, 85 Stat. 526, 527; Pub. L. 94-455, title XIX, Sec.
1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98-21, title
I, Sec. 121(c)(2), Apr. 20, 1983, 97 Stat. 82; Pub. L. 98-369, div.
A, title I, Secs. 42(a)(13), 127(e)(1), title IV, Sec.
474(r)(29)(G), (H), July 18, 1984, 98 Stat. 557, 652, 845; Pub. L.
99-514, title I, Sec. 123(b)(2), title XII, Sec. 1214(c)(3), title
XVIII, Sec. 1810(d)(3)(D), Oct. 22, 1986, 100 Stat. 2113, 2542,
2825; Pub. L. 100-647, title I, Sec. 1001(d)(2)(A), title VI, Sec.
6134(a)(2), Nov. 10, 1988, 102 Stat. 3350, 3721; Pub. L. 101-508,
title XI, Sec. 11704(a)(14), Nov. 5, 1990, 104 Stat. 1388-518; Pub.
L. 102-318, title V, Sec. 521(b)(32), (33), July 3, 1992, 106 Stat.
312; Pub. L. 103-66, title XIII, Sec. 13237(c)(4), Aug. 10, 1993,
107 Stat. 508; Pub. L. 103-296, title III, Sec. 320(a)(1)(B), Aug.
15, 1994, 108 Stat. 1535; Pub. L. 105-34, title XVI, Sec.
1604(g)(3), Aug. 5, 1997, 111 Stat. 1099.)
-REFTEXT-
REFERENCES IN TEXT
Section 101(a)(15) of the Immigration and Nationality Act, as
amended, referred to in subsec. (b), is classified to section
1101(a)(15) of Title 8, Aliens and Nationality.
The Mutual Educational and Cultural Exchange Act of 1961,
referred to in subsec. (b)(2)(C), is Pub. L. 87-256, Sept. 21,
1961, 75 Stat. 527, as amended, which is classified principally to
chapter 33 (Sec. 2451 et seq.) of Title 22, Foreign Relations and
Intercourse. For complete classification of this Act to the Code,
see Short Title note set out under section 2451 of Title 22 and
Tables.
The Tax Reform Act of 1984, referred to in subsec. (c)(3), is
division A [Secs. 5 to 1082] of Pub. L. 98-369, July 18, 1984, 98
Stat. 494, which was approved July 18, 1984. For complete
classification of this Act to the Code, see Short Title of 1984
Amendments note set out under section 1 of this title and Tables.
The Mutual Security Act of 1954, referred to in subsec. (c)(6),
is act Aug. 26, 1954, ch. 937, 68 Stat. 832, as amended by acts
July 8, 1955, ch. 301, 69 Stat. 283; July 18, 1956, ch. 627, Secs.
2 to 11, 70 Stat. 555; Aug. 14, 1957, Pub. L. 85-141, 71 Stat. 355;
June 30, 1958, Pub. L. 85-477, ch. 1, Secs. 101 to 103, ch. II,
Secs. 201 to 205, ch. III, Sec. 301, ch. IV, Sec. 401, ch. V, Sec.
501, 72 Stat. 261; July 24, 1959, Pub. L. 86-108, Sec. 2, ch. 1,
Sec. 101, ch. II, Secs. 201 to 205(a) to (i), (k) to (n), ch. III,
Sec. 301, ch. IV, Sec. 401(a) to (k), (m), 73 Stat. 246; May 14,
1960, Pub. L. 86-472, ch. I to V, 74 Stat. 134, which was
principally classified to chapter 24 (Sec. 1750 et seq.) of Title
22, Foreign Relations and Intercourse, and which was repealed by
act July 18, 1956, ch. 627, Sec. 8(m), 70 Stat. 559, Pub. L.
85-141, Secs. 2(e), 3, 4(b), 11(d), Aug. 14, 1957, 71 Stat. 356,
Pub. L. 86-108, ch. II, Secs. 205(j), ch. IV, 401(1), July 24,
1959, 73 Stat. 250, Pub. L. 86-472, ch. II, Secs. 203(d), 204(k),
May 14, 1960, 74 Stat. 138, Pub. L. 87-195, pt. III, Sec.
642(a)(2), Sept. 4, 1961, 75 Stat. 460, Pub. L. 94-329, title II,
Sec. 212(b)(1), June 30, 1976, 90 Stat 745, except for sections
1754, 1783, 1796, 1853, 1922, 1928, and 1937 of Title 22. For
complete classification of this Act to the Code, see Short Title
note set out under section 1754 of Title 22 and Tables.
-MISC1-
AMENDMENTS
1997 - Subsec. (g). Pub. L. 105-34 substituted "85 percent" for
"one-half".
1994 - Subsec. (b). Pub. L. 103-296 substituted "(J), (M), or
(Q)" for "(J), or (M)".
1993 - Subsec. (c)(9). Pub. L. 103-66 substituted "section
871(h)(3) or (4)" for "section 871(h)(3)".
1992 - Subsecs. (b), (c)(5). Pub. L. 102-318 struck out
"402(a)(2), 403(a)(2), or" before "631(b)".
1990 - Subsec. (b)(2). Pub. L. 101-508 inserted "section" before
"170(b)(1)(A)(ii)".
1988 - Subsec. (b). Pub. L. 100-647, Sec. 1001(d)(2)(A), amended
second sentence generally. Prior to amendment, second sentence read
as follows: "The items of income referred to in subsection (a) from
which tax shall be deducted and withheld at the rate of 14 percent
are amounts which are received by a nonresident alien individual
who is temporarily present in the United States as a nonimmigrant
under subparagraph (F) or (J) of section 101(a)(15) of the
Immigration and Nationality Act and which are incident to a
qualified scholarship to which section 117(a) applies, but only to
the extent such amounts are includible in gross income."
Subsec. (c)(11). Pub. L. 100-647, Sec. 6134(a)(2), added par.
(11).
1986 - Subsec. (b). Pub. L. 99-514, Sec. 123(b)(2), amended
second sentence generally. Prior to amendment, second sentence read
as follows: "The items of income referred to in subsection (a) from
which tax shall be deducted and withheld at the rate of 14 percent
are -
"(1) that portion of any scholarship or fellowship grant which
is received by a nonresident alien individual who is temporarily
present in the United States as a nonimmigrant under subparagraph
(F) or (J) of section 101(a)(15) of the Immigration and
Nationality Act, as amended, and which is not excluded from gross
income under section 117(a)(1) solely by reason of section
117(b)(2)(B); and
"(2) amounts described in subparagraphs (A), (B), (C), and (D)
of section 117(a)(2) which are received by any such nonresident
alien individual and which are incident to a scholarship or
fellowship grant to which section 117(a)(1) applies, but only to
the extent such amounts are includable in gross income."
Subsec. (c)(9). Pub. L. 99-514, Sec. 1810(d)(3)(D), substituted
"section 871(h)" for "871(h)(2)".
Subsec. (c)(10). Pub. L. 99-514, Sec. 1214(c)(3), added par.
(10).
1984 - Subsec. (a). Pub. L. 98-369, Sec. 474(r)(29)(G), struck
out "except in the cases provided for in section 1451 and" before
"except as otherwise provided in regulations".
Subsec. (b). Pub. L. 98-369, Sec. 42(a)(13), substituted "section
1273" for "section 1232(b)".
Subsec. (c)(3). Pub. L. 98-369, Sec. 474(r)(29)(H), inserted "(as
in effect before its repeal by the Tax Reform Act of 1984)".
Subsec. (c)(9). Pub. L. 98-369, Sec. 127(e)(1), added par. (9).
1983 - Subsec. (g). Pub. L. 98-21 added subsec. (g).
1976 - Pub. L. 94-455 struck out in subsecs. (a), (c)(2), (4),
(8), (d), "or his delegate" after "Secretary".
1971 - Subsec. (b). Pub. L. 92-178, Sec. 313(a), inserted "(other
than original issue discount as defined in section 1232(b))" after
"interest".
Subsec. (c)(8). Pub. L. 92-178, Sec. 313(d), added par. (8).
1969 - Subsec. (f). Pub. L. 91-172 added subsec. (f).
1966 - Subsec. (a). Pub. L. 89-809, Sec. 103(h)(1), substituted
"or of any foreign partnership" for ", or of any partnership not
engaged in trade or business within the United States and composed
in whole or in part of nonresident aliens,".
Subsec. (b). Pub. L. 89-809, Sec. 103(h)(2)-(4), struck out
"(except interest on deposits with persons carrying on the banking
business paid to persons not engaged in business in the United
States)" after "The items of income referred to in subsection (a)
are interest" and substituted "gains described in section
402(a)(2), 403(a)(2), or 631(b) or (c), amounts subject to tax
under section 871(a)(1)(C), gains subject to tax under section
871(a)(1)(D), and gains on transfers described in section 1235 made
on or before October 4, 1966" for "and amounts described in section
402(a)(2), section 403(a)(2), section 631(b) and (c), and section
1235, which are considered to be gains from the sale or exchange of
capital assets" in text preceding par. (1), and inserted provision
for treatment of items of income referred to in subsec. (a) in the
case of nonresident alien individuals who are members of domestic
partnerships.
Subsec. (c)(1). Pub. L. 89-809, Sec. 103(h)(5), substituted "in
the case of any item of income (other than compensation for
personal services) which is effectively connected with the conduct
of a trade or business within the United States and which is
included in the gross income of the recipient under section
871(b)(2) for the taxable year" for "in the case of dividends paid
by a foreign corporation unless (A) such corporation is engaged in
trade or business within the United States, and (B) more than 85
percent of the gross income of such corporation for the 3-year
period ending with the close of its taxable year preceding the
declaration of such dividends (or for such part of such period as
the corporation has been in existence) was derived from sources
within the United States as determined under part I of subchapter N
of chapter 1" after "shall be required".
Subsec. (c)(4). Pub. L. 89-809, Sec. 103(h)(6), struck out
provisions which had served to limit to compensation for personal
services of nonresident alien individuals who enter and leave the
United States at frequent intervals and of nonresident alien
individuals for the period they are temporarily present in the
United States as a nonimmigrant under subparagraph (F) and (J) of
section 101(a)(15) of the Immigration and Nationality Act, as
amended, the application of the exemption from deduction and
withholding under subsec. (a), leaving the exemption under subsec.
(a) applicable to compensation for personal services without
further limitation.
Subsec. (c)(5). Pub. L. 89-809, Sec. 103(h)(7), substituted
"gains described in section 402(a)(2), 403(a)(2), or 631(b) or (c),
gains subject to tax under section 871 (a)(1)(D), and gains on
transfers described in section 1235 made on or before October 4,
1966," for "amounts described in section 402(a)(2), section
403(a)(2), section 631(b) and (c), and section 1235, which are
considered to be gains from the sale or exchange of capital
assets," and "amounts payable," for "proceeds from such sale or
exchange,".
Subsec. (c)(7). Pub. L. 89-809, Sec. 103(h)(8), added par. (7).
Subsecs. (d), (e). Pub. L. 89-809, Sec. 103(h)(9), added subsec.
(d) and redesignated former subsec. (d) as (e).
1964 - Subsecs. (a), (b). Pub. L. 88-272 reduced the withholding
rate from 18% to 14%.
1961 - Subsec. (a). Pub. L. 87-256, Sec. 110(d)(1), required a
tax equal to 18 percent of the item in the case of any item of
income specified in second sentence of subsection (b).
Subsec. (b). Pub. L. 87-256, Sec. 110(d)(2), inserted provisions
listing items of income from which tax shall be deducted and
withheld at the rate of 18 percent.
Subsec. (c)(4). Pub. L. 87-256, Sec. 110(d)(3), authorized the
exemption from deduction and withholding of the compensation for
personal services of a nonresident alien individual for the period
he is temporarily present in the United States as a nonimmigrant
under subpar. (F) or (J) of section 101(a)(15) of the Immigration
and Nationality Act, as amended.
1958 - Subsecs. (b), (c)(5). Pub. L. 85-866 inserted "section
403(a)(2)," after "section 402(a)(2),".
1956 - Subsec. (c)(6). Act July 18, 1956, added section 544(f) to
act Aug. 26, 1954, which section amended this subsection by adding
par. (6).
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by Pub. L. 103-296 effective with calendar quarter
following Aug. 15, 1994, see section 320(c) of Pub. L. 103-296, set
out as a note under section 871 of this title.
EFFECTIVE DATE OF 1993 AMENDMENT
Amendment by Pub. L. 103-66 applicable to interest received after
Dec. 31, 1993, see section 13237(d) of Pub. L. 103-66, set out as a
note under section 871 of this title.
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102-318 applicable to distributions after
Dec. 31, 1992, see section 521(e) of Pub. L. 102-318, set out as a
note under section 402 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by section 1001(d)(2)(A) of Pub. L. 100-647 effective,
except as otherwise provided, as if included in the provision of
the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
relates, see section 1019(a) of Pub. L. 100-647, set out as a note
under section 1 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by section 123(b)(2) of Pub. L. 99-514 applicable to
taxable years beginning after Dec. 31, 1986, but only in the case
of scholarships and fellowships granted after Aug. 16, 1986, see
section 151(d) of Pub. L. 99-514, set out as a note under section 1
of this title.
Amendment by section 1214(c)(3) of Pub. L. 99-514 applicable to
payments made in a taxable year of the payor beginning after Dec.
31, 1986, except as otherwise provided, see section 1214(d) of Pub.
L. 99-514, as amended, set out as a note under section 861 of this
title.
Amendment by section 1810(d)(3)(D) of Pub. L. 99-514 effective,
except as otherwise provided, as if included in the provisions of
the Tax Reform Act of 1984, Pub. L. 98-369, div. A, to which such
amendment relates, see section 1881 of Pub. L. 99-514, set out as a
note under section 48 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by section 42(a)(13) of Pub. L. 98-369 applicable to
taxable years ending after July 18, 1984, see section 44 of Pub. L.
98-369, set out as an Effective Date note under section 1271 of
this title.
Amendment by section 127(e)(1) of Pub. L. 98-369 applicable to
interest received after July 18, 1984, with respect to obligations
issued after such date, in taxable years ending after such date,
see section 127(g)(1) of Pub. L. 98-369, set out as a note under
section 871 of this title.
Amendment by section 474(r)(29)(G), (H) of Pub. L. 98-369 not
applicable with respect to obligations issued before Jan. 1, 1984,
see section 475(b) of Pub. L. 98-369, set out as a note under
section 33 of this title.
EFFECTIVE DATE OF 1983 AMENDMENT
Amendment by Pub. L. 98-21 applicable to benefits received after
Dec. 31, 1983, in taxable years ending after such date, except for
any portion of a lump-sum payment of social security benefits
received after Dec. 31, 1983, if the generally applicable payment
date for such portion was before Jan. 1, 1984, see section 121(g)
of Pub. L. 98-21, set out as an Effective Date note under section
86 of this title.
EFFECTIVE DATE OF 1971 AMENDMENT
Amendment by Pub. L. 92-178 applicable with respect to payments
occurring on or after Apr. 1, 1972, see section 313(f) of Pub. L.
92-178, set out as a note under section 871 of this title.
EFFECTIVE DATE OF 1966 AMENDMENT
Amendment by Pub. L. 89-809 applicable with respect to payments
made in taxable years of recipients beginning after Dec. 31, 1966,
see section 103(n)(2) of Pub. L. 89-809, set out as a note under
section 871 of this title.
EFFECTIVE DATE OF 1964 AMENDMENT
Amendment by Pub. L. 88-272 applicable to payments made after
seventh day following Feb. 24, 1964, see section 302(d) of Pub. L.
88-272, set out as a note under section 3402 of this title.
EFFECTIVE DATE OF 1961 AMENDMENT
Section 110(h)(2) of Pub. L. 87-256 provided that: "The
amendments made by subsection (d) of this section [amending this
section] shall apply with respect to payments made after December
31, 1961."
EFFECTIVE DATE OF 1958 AMENDMENT
Amendment by Pub. L. 85-866 effective Sept. 3, 1958, see section
40(c) of Pub. L. 85-866, set out as a note under section 871 of
this title.
REPEALS
Section 544(f) of act Aug. 26, 1954, cited as a credit to this
section, was repealed by Pub. L. 85-141, except insofar as such
section 544(f) affected this section.
APPLICABILITY OF CERTAIN AMENDMENTS BY PUB. L. 99-514 IN RELATION
TO TREATY OBLIGATIONS OF UNITED STATES
For nonapplication of amendments by sections 123(b)(2) and
1214(c)(3) of Pub. L. 99-514 to the extent application of such
amendments would be contrary to any treaty obligation of the United
States in effect on Oct. 22, 1986, with provision that for such
purposes any amendment by title I of Pub. L. 100-647 be treated as
if it had been included in the provision of Pub. L. 99-514 to which
such amendment relates, see section 1012(aa)(3), (4) of Pub. L.
100-647, set out as a note under section 861 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1994
For provisions directing that if any amendments made by subtitle
B [Secs. 521-523] of title V of Pub. L. 102-318 require an
amendment to any plan, such plan amendment shall not be required to
be made before the first plan year beginning on or after Jan. 1,
1994, see section 523 of Pub. L. 102-318, set out as a note under
section 401 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by subtitle
A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
amendment to any plan, such plan amendment shall not be required to
be made before the first plan year beginning on or after Jan. 1,
1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
note under section 401 of this title.
WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN CORPORATIONS
Pub. L. 97-248, title III, Sec. 342, Sept. 3, 1982, 96 Stat. 635,
as amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat.
2095, provided that: "Not later than 2 years after the date of the
enactment of this Act [Sept. 3, 1982], the Secretary of the
Treasury or his delegate shall prescribe regulations establishing
certification procedures, refund procedures, or other procedures
which ensure that any benefit of any treaty relating to withholding
of tax under sections 1441 and 1442 of the Internal Revenue Code of
1986 [formerly I.R.C. 1954] is available only to persons entitled
to such benefit."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 5, 565, 860G, 871, 884,
1276, 1278, 1442, 1444, 3402, 6049, 6103, 7701 of this title; title
12 section 3413; title 25 section 2719; title 48 section 1421i.
-End-
-CITE-
26 USC Sec. 1442 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 3 - WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN
CORPORATIONS
Subchapter A - Nonresident Aliens and Foreign Corporations
-HEAD-
Sec. 1442. Withholding of tax on foreign corporations
-STATUTE-
(a) General rule
In the case of foreign corporations subject to taxation under
this subtitle, there shall be deducted and withheld at the source
in the same manner and on the same items of income as is provided
in section 1441 a tax equal to 30 percent thereof. For purposes of
the preceding sentence, the references in section 1441(b) to
sections 871(a)(1)(C) and (D) shall be treated as referring to
sections 881(a)(3) and (4), the reference in section 1441(c)(1) to
section 871(b)(2) shall be treated as referring to section 842 or
section 882(a)(2), as the case may be, the reference in section
1441(c)(5) to section 871(a)(1)(D) shall be treated as referring to
section 881(a)(4), the reference in section 1441(c)(8) to section
871(a)(1)(C) shall be treated as referring to section 881(a)(3),
the references in section 1441(c)(9) to sections 871(h) and
871(h)(3) or (4) shall be treated as referring to sections 881(c)
and 881(c)(3) or (4), and the reference in section 1441(c)(10) to
section 871(i)(2) shall be treated as referring to section 881(d).
(b) Exemption
Subject to such terms and conditions as may be provided by
regulations prescribed by the Secretary, subsection (a) shall not
apply in the case of a foreign corporation engaged in trade or
business within the United States if the Secretary determines that
the requirements of subsection (a) impose an undue administrative
burden and that the collection of the tax imposed by section 881 on
such corporation will not be jeopardized by the exemption.
(c) Exception for certain possessions corporations
For purposes of this section, the term "foreign corporation" does
not include a corporation created or organized in Guam, American
Samoa, the Northern Mariana Islands, or the Virgin Islands or under
the law of any such possession if the requirements of subparagraphs
(A), (B), and (C) of section 881(b)(1) are met with respect to such
corporation.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 358; Pub. L. 89-809, title I,
Sec. 104(c), Nov. 13, 1966, 80 Stat. 1557; Pub. L. 92-178, title
III, Sec. 313(e), Dec. 10, 1971, 85 Stat. 528; Pub. L. 92-606, Sec.
1(e)(2), Oct. 31, 1972, 86 Stat. 1497; Pub. L. 94-455, title XIX,
Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98-369,
div. A, title I, Secs. 127(e)(2), 130(b), title IV, Sec.
474(r)(29)(I), July 18, 1984, 98 Stat. 652, 661, 845; Pub. L.
99-514, title XII, Sec. 1273(b)(2)(B), title XVIII, Sec.
1810(d)(3)(E), Oct. 22, 1986, 100 Stat. 2596, 2825; Pub. L.
100-647, title I, Sec. 1012(g)(7), Nov. 10, 1988, 102 Stat. 3501;
Pub. L. 103-66, title XIII, Sec. 13237(c)(5), Aug. 10, 1993, 107
Stat. 508.)
-MISC1-
AMENDMENTS
1993 - Subsec. (a). Pub. L. 103-66 substituted "871(h)(3) or (4)"
for "871(h)(3)" and "881(c)(3) or (4)" for "881(c)(3)".
1988 - Subsec. (a). Pub. L. 100-647 struck out "and" after "to
section 881(a)(3)," and inserted before period at end ", and the
reference in section 1441(c)(10) to section 871(i)(2) shall be
treated as referring to section 881(d)".
1986 - Subsec. (a). Pub. L. 99-514, Sec. 1810(d)(3)(E),
substituted "871(h)" for "871(h)(2)", "881(c)" for "881(c)(2)", and
"1441(c)(9)" for "1449(c)(9)".
Subsec. (c). Pub. L. 99-514, Sec. 1273(b)(2)(B), amended subsec.
(c) generally, substituting reference to "certain possessions
corporations" for reference to "certain Guam and Virgin Islands
corporations" in heading, and in text extending "foreign
corporation" exception so as to not include corporation created or
organized in Guam, American Samoa, Northern Mariana Islands, or the
Virgin Islands, and striking out par. (2) which declared that par.
(1) not apply to tax imposed in Guam, and par. (3) which referred
to sections 934 and 943a for tax imposed in Virgin Islands.
1984 - Subsec. (a). Pub. L. 98-369, Sec. 474(r)(29)(I), struck
out "or section 1451" after "provided in section 1441" and struck
out "; except that, in the case of interest described in section
1451 (relating to tax-free covenant bonds), the deduction and
withholding shall be at the rate specified therein" after "a tax
equal to 30 percent thereof".
Pub. L. 98-369, Sec. 127(e)(2), struck out "and" after "section
881(a)(4)," and inserted ", and the references in section
1449(c)(9) to sections 871(h)(2) and 871(h)(3) shall be treated as
referring to sections 881(c)(2) and 881(c)(3)".
Subsec. (c). Pub. L. 98-369, Sec. 130(b), substituted provision
relating to exception for certain Guam and Virgin Islands
corporations for provision relating to exception for Guam
corporations.
1976 - Subsec. (b). Pub. L. 94-455 struck out "or his delegate"
after "Secretary" in two places.
1972 - Subsec. (c). Pub. L. 92-606 added subsec. (c).
1971 - Subsec. (a). Pub. L. 92-178 provided that reference in
section 1441(c)(8) to section 871(a)(1)(C) shall be treated as
referring to section 881(a)(3).
1966 - Pub. L. 89-809 limited the withholding of tax at the 30
percent rate to items of fixed or determinable United States source
income not effectively connected with the conduct of a trade or
business in the United States and authorized the granting of an
exemption from the withholding requirement in the case of a foreign
corporation engaged in trade or business within the United States
if the Secretary or his delegate determines that the withholding
imposes an undue administrative burden and that the collection of
the tax will not be jeopardized by the exemption.
EFFECTIVE DATE OF 1993 AMENDMENT
Amendment by Pub. L. 103-66 applicable to interest received after
Dec. 31, 1993, see section 13237(d) of Pub. L. 103-66, set out as a
note under section 871 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective, except as otherwise
provided, as if included in the provision of the Tax Reform Act of
1986, Pub. L. 99-514, to which such amendment relates, see section
1019(a) of Pub. L. 100-647, set out as a note under section 1 of
this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by section 1273(b)(2)(B) of Pub. L. 99-514 applicable
to taxable years beginning after Dec. 31, 1986, with certain
exceptions and qualifications, see section 1277 of Pub. L. 99-514,
set out as a note under section 931 of this title.
Amendment by section 1810(d)(3)(E) of Pub. L. 99-514 effective,
except as otherwise provided, as if included in the provisions of
the Tax Reform Act of 1984, Pub. L. 98-369, div. A, to which such
amendment relates, see section 1881 of Pub. L. 99-514, set out as a
note under section 48 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by section 127(e)(2) of Pub. L. 98-369 applicable to
interest received after July 18, 1984, with respect to obligations
issued after such date, in taxable years after such date, see
section 127(g)(1) of Pub. L. 98-369, set out as a note under
section 871 of this title.
Amendment by section 130(b) of Pub. L. 98-369 applicable to
payments made after Mar. 1, 1984, in taxable years ending after
such date, see section 130(d) of Pub. L. 98-369, set out as a note
under section 881 of this title.
Amendment by section 474(r)(29)(I) of Pub. L. 98-369 not
applicable with respect to obligations issued before Jan. 1, 1984,
see section 475(b) of Pub. L. 98-369, set out as a note under
section 33 of this title.
EFFECTIVE DATE OF 1972 AMENDMENT
Section 2 of Pub. L. 92-606 provided in part that: "The amendment
made by section 1(e)(2) [amending this section] shall take effect
on the day after the date of enactment of this Act [Oct. 31,
1972]."
EFFECTIVE DATE OF 1971 AMENDMENT
Amendment by Pub. L. 92-178 applicable with respect to payments
occurring on or after Apr. 1, 1972, see section 313(f) of Pub. L.
92-178, set out as a note under section 871 of this title.
EFFECTIVE DATE OF 1966 AMENDMENT
Amendment by Pub. L. 89-809 applicable with respect to taxable
years beginning after Dec. 31, 1966, see section 104(n) of Pub. L.
89-809, set out as a note under section 11 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by subtitle
A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
amendment to any plan, such plan amendment shall not be required to
be made before the first plan year beginning on or after Jan. 1,
1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
note under section 401 of this title.
WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN CORPORATIONS
For provisions relating to withholding of tax on nonresident
aliens and foreign corporations, see Pub. L. 97-248, title III,
Sec. 342, Sept. 3, 1982, 96 Stat. 635, set out as a note under
section 1441 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 12, 565, 814, 860G, 881,
884, 885, 1276, 1278, 1444, 3402, 7701 of this title; title 48
section 1421i.
-End-
-CITE-
26 USC Sec. 1443 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 3 - WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN
CORPORATIONS
Subchapter A - Nonresident Aliens and Foreign Corporations
-HEAD-
Sec. 1443. Foreign tax-exempt organizations
-STATUTE-
(a) Income subject to section 511
In the case of income of a foreign organization subject to the
tax imposed by section 511, this chapter shall apply to income
includible under section 512 in computing its unrelated business
taxable income, but only to the extent and subject to such
conditions as may be provided under regulations prescribed by the
Secretary.
(b) Income subject to section 4948
In the case of income of a foreign organization subject to the
tax imposed by section 4948(a), this chapter shall apply, except
that the deduction and withholding shall be at the rate of 4
percent and shall be subject to such conditions as may be provided
under regulations prescribed by the Secretary.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 358; Pub. L. 91-172, title I,
Secs. 101(j)(22), 121(d)(2)(C), Dec. 30, 1969, 83 Stat. 528, 547;
Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90
Stat. 1834.)
-MISC1-
AMENDMENTS
1976 - Pub. L. 94-455 struck out "or his delegate" after
"Secretary" in two places.
1969 - Pub. L. 91-172, Sec. 101(j)(22), designated existing
provisions as subsec. (a) and added subsec. (b).
Subsec. (a). Pub. L. 91-172, Sec. 121(d)(2)(C), substituted
"income" for "rents" after "this chapter shall apply to".
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by section 101(j)(22) of Pub. L. 91-172 effective Jan.
1, 1970, see section 101(k)(1) of Pub. L. 91-172, set out as an
Effective Date note under section 4940 of this title.
Amendment by section 121(d)(2)(C) of Pub. L. 91-172 applicable to
taxable years beginning after Dec. 31, 1969, see section 121(g) of
Pub. L. 91-172, set out as a note under section 511 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 7701 of this title; title
48 section 1421i.
-End-
-CITE-
26 USC Sec. 1444 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 3 - WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN
CORPORATIONS
Subchapter A - Nonresident Aliens and Foreign Corporations
-HEAD-
Sec. 1444. Withholding on Virgin Islands source income
-STATUTE-
For purposes of determining the withholding tax liability
incurred in the Virgin Islands pursuant to this title (as made
applicable to the Virgin Islands) with respect to amounts received
from sources within the Virgin Islands by citizens and resident
alien individuals of the United States, and corporations organized
in the United States, the rate of withholding tax under sections
1441 and 1442 on income subject to tax under section 871(a)(1) or
881 shall not exceed the rate of tax on such income under section
871(a)(1) or 881, as the case may be.
-SOURCE-
(Added Pub. L. 97-455, Sec. 1(b), Jan. 12, 1983, 96 Stat. 2497;
amended Pub. L. 100-647, title I, Sec. 1012(x), Nov. 10, 1988, 102
Stat. 3530.)
-MISC1-
AMENDMENTS
1988 - Pub. L. 100-647 struck out "(as modified by section 934A)"
before "shall not exceed".
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective, except as otherwise
provided, as if included in the provision of the Tax Reform Act of
1986, Pub. L. 99-514, to which such amendment relates, see section
1019(a) of Pub. L. 100-647, set out as a note under section 1 of
this title.
EFFECTIVE DATE
Section applicable to payments made after Jan. 12, 1983, see
section 1(e)(2) of Pub. L. 97-455, set out as a note under section
934 of this title.
-End-
-CITE-
26 USC Sec. 1445 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 3 - WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN
CORPORATIONS
Subchapter A - Nonresident Aliens and Foreign Corporations
-HEAD-
Sec. 1445. Withholding of tax on dispositions of United States real
property interests
-STATUTE-
(a) General rule
Except as otherwise provided in this section, in the case of any
disposition of a United States real property interest (as defined
in section 897(c)) by a foreign person, the transferee shall be
required to deduct and withhold a tax equal to 10 percent of the
amount realized on the disposition.
(b) Exemptions
(1) In general
No person shall be required to deduct and withhold any amount
under subsection (a) with respect to a disposition if paragraph
(2), (3), (4), (5), or (6) applies to the transaction.
(2) Transferor furnishes nonforeign affidavit
Except as provided in paragraph (7), this paragraph applies to
the disposition if the transferor furnishes to the transferee an
affidavit by the transferor stating, under penalty of perjury,
the transferor's United States taxpayer identification number and
that the transferor is not a foreign person.
(3) Nonpublicly traded domestic corporation furnishes affidavit
that interests in corporation not United States real property
interests
Except as provided in paragraph (7), this paragraph applies in
the case of a disposition of any interest in any domestic
corporation if the domestic corporation furnishes to the
transferee an affidavit by the domestic corporation stating,
under penalty of perjury, that -
(A) the domestic corporation is not and has not been a United
States real property holding corporation (as defined in section
897(c)(2)) during the applicable period specified in section
897(c)(1)(A)(ii), or
(B) as of the date of the disposition, interests in such
corporation are not United States real property interests by
reason of section 897(c)(1)(B).
(4) Transferee receives qualifying statement
(A) In general
This paragraph applies to the disposition if the transferee
receives a qualifying statement at such time, in such manner,
and subject to such terms and conditions as the Secretary may
by regulations prescribe.
(B) Qualifying statement
For purposes of subparagraph (A), the term "qualifying
statement" means a statement by the Secretary that -
(i) the transferor either -
(I) has reached agreement with the Secretary (or such
agreement has been reached by the transferee) for the
payment of any tax imposed by section 871(b)(1) or
882(a)(1) on any gain recognized by the transferor on the
disposition of the United States real property interest, or
(II) is exempt from any tax imposed by section 871(b)(1)
or 882(a)(1) on any gain recognized by the transferor on
the disposition of the United States real property
interest, and
(ii) the transferor or transferee has satisfied any
transferor's unsatisfied withholding liability or has
provided adequate security to cover such liability.
(5) Residence where amount realized does not exceed $300,000
This paragraph applies to the disposition if -
(A) the property is acquired by the transferee for use by him
as a residence, and
(B) the amount realized for the property does not exceed
$300,000.
(6) Stock regularly traded on established securities market
This paragraph applies if the disposition is of a share of a
class of stock that is regularly traded on an established
securities market.
(7) Special rules for paragraphs (2) and (3)
Paragraph (2) or (3) (as the case may be) shall not apply to
any disposition -
(A) if -
(i) the transferee has actual knowledge that the affidavit
referred to in such paragraph is false, or
(ii) the transferee receives a notice (as described in
subsection (d)) from a transferor's agent or a transferee's
agent that such affidavit is false, or
(B) if the Secretary by regulations requires the transferee
to furnish a copy of such affidavit to the Secretary and the
transferee fails to furnish a copy of such affidavit to the
Secretary at such time and in such manner as required by such
regulations.
(c) Limitations on amount required to be withheld
(1) Cannot exceed transferor's maximum tax liability
(A) In general
The amount required to be withheld under this section with
respect to any disposition shall not exceed the amount (if any)
determined under subparagraph (B) as the transferor's maximum
tax liability.
(B) Request
At the request of the transferor or transferee, the Secretary
shall determine, with respect to any disposition, the
transferor's maximum tax liability.
(C) Refund of excess amounts withheld
Subject to such terms and conditions as the Secretary may by
regulations prescribe, a transferor may seek and obtain a
refund of any amounts withheld under this section in excess of
the transferor's maximum tax liability.
(2) Authority of Secretary to prescribe reduced amount
At the request of the transferor or transferee, the Secretary
may prescribe a reduced amount to be withheld under this section
if the Secretary determines that to substitute such reduced
amount will not jeopardize the collection of the tax imposed by
section 871(b)(1) or 882(a)(1).
(3) Procedural rules
(A) Regulations
Requests for -
(i) qualifying statements under subsection (b)(4),
(ii) determinations of transferor's maximum tax liability
under paragraph (1), and
(iii) reductions under paragraph (2) in the amount required
to be withheld,
shall be made at the time and manner, and shall include such
information, as the Secretary shall prescribe by regulations.
(B) Requests to be handled within 90 days
The Secretary shall take action with respect to any request
described in subparagraph (A) within 90 days after the
Secretary receives the request.
(d) Liability of transferor's agents or transferee's agents
(1) Notice of false affidavit; foreign corporations
If -
(A) the transferor furnishes the transferee an affidavit
described in paragraph (2) of subsection (b) or a domestic
corporation furnishes the transferee an affidavit described in
paragraph (3) of subsection (b), and
(B) in the case of -
(i) any transferor's agent -
(I) such agent has actual knowledge that such affidavit
is false, or
(II) in the case of an affidavit described in subsection
(b)(2) furnished by a corporation, such corporation is a
foreign corporation, or
(ii) any transferee's agent, such agent has actual
knowledge that such affidavit is false,
such agent shall so notify the transferee at such time and in
such manner as the Secretary shall require by regulations.
(2) Failure to furnish notice
(A) In general
If any transferor's agent or transferee's agent is required
by paragraph (1) to furnish notice, but fails to furnish such
notice at such time or times and in such manner as may be
required by regulations, such agent shall have the same duty to
deduct and withhold that the transferee would have had if such
agent had complied with paragraph (1).
(B) Liability limited to amount of compensation
An agent's liability under subparagraph (A) shall be limited
to the amount of compensation the agent derives from the
transaction.
(3) Transferor's agent
For purposes of this subsection, the term "transferor's agent"
means any person who represents the transferor -
(A) in any negotiation with the transferee or any
transferee's agent related to the transaction, or
(B) in settling the transaction.
(4) Transferee's agent
For purposes of this subsection, the term "transferee's agent"
means any person who represents the transferee -
(A) in any negotiation with the transferor or any
transferor's agent related to the transaction, or
(B) in settling the transaction.
(5) Settlement officer not treated as transferor's agent
For purposes of this subsection, a person shall not be treated
as a transferor's agent or transferee's agent with respect to any
transaction merely because such person performs 1 or more of the
following acts:
(A) The receipt and the disbursement of any portion of the
consideration for the transaction.
(B) The recording of any document in connection with the
transaction.
(e) Special rules relating to distributions, etc., by corporations,
partnerships, trusts, or estates
(1) Certain domestic partnerships, trusts, and estates
In the case of any disposition of a United States real property
interest as defined in section 897(c) (other than a disposition
described in paragraph (4) or (5)) by a domestic partnership,
domestic trust, or domestic estate, such partnership, the trustee
of such trust, or the executor of such estate (as the case may
be) shall be required to deduct and withhold under subsection (a)
a tax equal to 35 percent (or, to the extent provided in
regulations, 15 percent) of the gain realized to the extent such
gain -
(A) is allocable to a foreign person who is a partner or
beneficiary of such partnership, trust, or estate, or
(B) is allocable to a portion of the trust treated as owned
by a foreign person under subpart E of part I of subchapter J.
(2) Certain distributions by foreign corporations
In the case of any distribution by a foreign corporation on
which gain is recognized under subsection (d) or (e) of section
897, the foreign corporation shall deduct and withhold under
subsection (a) a tax equal to 35 percent of the amount of gain
recognized on such distribution under such subsection.
(3) Distributions by certain domestic corporations to foreign
shareholders
If a domestic corporation which is or has been a United States
real property holding corporation (as defined in section
897(c)(2)) during the applicable period specified in section
897(c)(1)(A)(ii) distributes property to a foreign person in a
transaction to which section 302 or part II of subchapter C
applies, such corporation shall deduct and withhold under
subsection (a) a tax equal to 10 percent of the amount realized
by the foreign shareholder. The preceding sentence shall not
apply if, as of the date of the distribution, interests in such
corporation are not United States real property interests by
reason of section 897(c)(1)(B). Rules similar to the rules of the
preceding provisions of this paragraph shall apply in the case of
any distribution to which section 301 applies and which is not
made out of the earnings and profits of such a domestic
corporation.
(4) Taxable distributions by domestic or foreign partnerships,
trusts, or estates
A domestic or foreign partnership, the trustee of a domestic or
foreign trust, or the executor of a domestic or foreign estate
shall be required to deduct and withhold under subsection (a) a
tax equal to 10 percent of the fair market value (as of the time
of the taxable distribution) of any United States real property
interest distributed to a partner of the partnership or a
beneficiary of the trust or estate, as the case may be, who is a
foreign person in a transaction which would constitute a taxable
distribution under the regulations promulgated by the Secretary
pursuant to section 897.
(5) Rules relating to dispositions of interest in partnerships,
trusts, or estates
To the extent provided in regulations, the transferee of a
partnership interest or of a beneficial interest in a trust or
estate shall be required to deduct and withhold under subsection
(a) a tax equal to 10 percent of the amount realized on the
disposition.
(6) Regulations
The Secretary shall prescribe such regulations as may be
necessary to carry out the purposes of this subsection, including
regulations providing for exceptions from provisions of this
subsection and regulations for the application of this subsection
in the case of payments through 1 or more entities.
(f) Definitions
For purposes of this section -
(1) Transferor
The term "transferor" means the person disposing of the United
States real property interest.
(2) Transferee
The term "transferee" means the person acquiring the United
States real property interest.
(3) Foreign person
The term "foreign person" means any person other than a United
States person.
(4) Transferor's maximum tax liability
The term "transferor's maximum tax liability" means, with
respect to the disposition of any interest, the sum of -
(A) the maximum amount which the Secretary determines could
be imposed as tax under section 871(b)(1) or 882(a)(1) by
reason of the disposition, plus
(B) the amount the Secretary determines to be the
transferor's unsatisfied withholding liability with respect to
such interest.
(5) Transferor's unsatisfied withholding liability
The term "transferor's unsatisfied withholding liability" means
the withholding obligation imposed by this section on the
transferor's acquisition of the United States real property
interest or on the acquisition of a predecessor interest, to the
extent such obligation has not been satisfied.
-SOURCE-
(Added Pub. L. 98-369, div. A, title I, Sec. 129(a)(1), July 18,
1984, 98 Stat. 655; amended Pub. L. 99-514, title III, Sec.
311(b)(4), title XVIII, Sec. 1810(f)(2)-(4)(A), (5), (6), (8), Oct.
22, 1986, 100 Stat. 2219, 2827, 2828; Pub. L. 100-647, title I,
Sec. 1003(b)(3), Nov. 10, 1988, 102 Stat. 3384; Pub. L. 103-66,
title XIII, Sec. 13221(c)(3), Aug. 10, 1993, 107 Stat. 477; Pub. L.
104-188, title I, Sec. 1704(c)(1), Aug. 20, 1996, 110 Stat. 1878;
Pub. L. 105-34, title III, Sec. 311(c)(1), Aug. 5, 1997, 111 Stat.
835; Pub. L. 108-27, title III, Sec. 301(a)(2)(C), May 28, 2003,
117 Stat. 758.)
-STATAMEND-
AMENDMENT OF SECTION
For termination of amendment by section 303 of Pub. L. 108-27,
see Effective and Termination Dates of 2003 Amendment note below.
-MISC1-
AMENDMENTS
2003 - Subsec. (e)(1). Pub. L. 108-27, Secs. 301(a)(2)(C), 303,
temporarily substituted "15 percent" for "20 percent". See
Effective and Termination Dates of 2003 Amendment note below.
1997 - Subsec. (e)(1). Pub. L. 105-34 substituted "20 percent"
for "28 percent" in introductory provisions.
1996 - Subsec. (e)(3). Pub. L. 104-188 inserted at end "Rules
similar to the rules of the preceding provisions of this paragraph
shall apply in the case of any distribution to which section 301
applies and which is not made out of the earnings and profits of
such a domestic corporation."
1993 - Subsec. (e)(1), (2). Pub. L. 103-66 substituted "35
percent" for "34 percent".
1988 - Subsec. (e)(1). Pub. L. 100-647 inserted "(or, to the
extent provided in regulations, 28 percent)" after "to 34 percent".
1986 - Subsec. (b)(3). Pub. L. 99-514, Sec. 1810(f)(2), amended
par. (3) generally, substituting "interests in corporation not
United States real property interests" for "it is not a United
States real property holding corporation" in heading, striking out
the comma before "if the domestic corporation" in introductory
provisions, inserting subpar. (A) designation and adding subpar.
(B).
Subsec. (d)(1)(A). Pub. L. 99-514, Sec. 1810(f)(3)(B),
substituted "paragraph (2)" for "paragraph (2)(A)".
Subsec. (d)(1)(B)(i). Pub. L. 99-514, Sec. 1810(f)(3)(A), amended
cl. (i) generally. Prior to amendment, cl. (i) read as follows:
"any transferor's agent, the transferor is a foreign corporation or
such agent has actual knowledge that such affidavit is false, or".
Subsec. (e)(1). Pub. L. 99-514, Sec. 311(b)(4), substituted "34
percent" for "28 percent".
Pub. L. 99-514, Sec. 1810(f)(4), amended par. (1) generally.
Prior to amendment, par. (1) read as follows: "A domestic
partnership, the trustee of a domestic trust, or the executor of a
domestic estate shall be required to deduct and withhold under
subsection (a) a tax equal to 10 percent of any amount of which
such partnership, trustee, or executor has custody which is -
"(A) attributable to the disposition of a United States real
property interest (as defined in section 897(c), other than a
disposition described in paragraph (4) or (5)), and
"(B) either -
"(i) includible in the distributive share of a partner of the
partnership who is a foreign person,
"(ii) includible in the income of a beneficiary of the trust
or estate who is a foreign person, or
"(iii) includible in the income of a foreign person under the
provisions of section 671."
Subsec. (e)(2). Pub. L. 99-514, Sec. 311(b)(4), substituted "34
percent" for "28 percent".
Subsec. (e)(3). Pub. L. 99-514, Sec. 1810(f)(5), inserted "The
preceding sentence shall not apply if, as of the date of the
distribution, interests in such corporation are not United States
real property interests by reason of section 897(c)(1)(B)."
Subsec. (e)(4). Pub. L. 99-514, Sec. 1810(f)(6), substituted
"section 897" for "section 897(g)".
Subsec. (e)(6). Pub. L. 99-514, Sec. 1810(f)(8), inserted "and
regulations for the application of this subsection in the case of
payments through 1 or more entities".
EFFECTIVE AND TERMINATION DATES OF 2003 AMENDMENT
Amendment by Pub. L. 108-27 applicable to amounts paid after May
28, 2003, see section 301(d)(2) of Pub. L. 108-27, set out as a
note under section 1 of this title.
Amendment by Pub. L. 108-27 inapplicable to taxable years
beginning after Dec. 31, 2008, and the Internal Revenue Code of
1986 to be applied and administered to such years as if such
amendment had never been enacted, see section 303 of Pub. L.
108-27, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by Pub. L. 105-34 applicable only to amounts paid after
Aug. 5, 1997, see section 311(d)(2) of Pub. L. 105-34, set out as a
note under section 1 of this title.
EFFECTIVE DATE OF 1996 AMENDMENT
Section 1704(c)(2) of Pub. L. 104-188 provided that: "The
amendment made by paragraph (1) [amending this section] shall apply
to distributions after the date of the enactment of this Act [Aug.
20, 1996]."
EFFECTIVE DATE OF 1988 AMENDMENT
Section 1003(b)(3) of Pub. L. 100-647 provided that the amendment
made by that section is effective for taxable years beginning after
Dec. 31, 1987.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by section 311(b)(4) of Pub. L. 99-514 applicable to
payments made after Dec. 31, 1986, see section 311(c) of Pub. L.
99-514, as amended, set out as a note under section 1201 of this
title.
Amendment by section 1810(f)(2), (3), (5), (6), (8) of Pub. L.
99-514 effective, except as otherwise provided, as if included in
the provisions of the Tax Reform Act of 1984, Pub. L. 98-369, div.
A, to which such amendment relates, see section 1881 of Pub. L.
99-514, set out as a note under section 48 of this title.
Section 1810(f)(4)(B) of Pub. L. 99-514 provided that: "The
amendment made by subparagraph (A) [amending this section] shall
apply to dispositions after the day 30 days after the date of the
enactment of this Act [Oct. 22, 1986]."
EFFECTIVE DATE
Section 129(c)(1) of Pub. L. 98-369 provided that: "The amendment
made by subsection (a) [enacting this section] shall apply to any
disposition on or after January 1, 1985."
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by subtitle
A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
amendment to any plan, such plan amendment shall not be required to
be made before the first plan year beginning on or after Jan. 1,
1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
note under section 401 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 897, 6039C of this title;
title 48 section 1421i.
-End-
-CITE-
26 USC Sec. 1446 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 3 - WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN
CORPORATIONS
Subchapter A - Nonresident Aliens and Foreign Corporations
-HEAD-
Sec. 1446. Withholding (!1) tax on foreign partners' share of
effectively connected income
-STATUTE-
-STATUTE-
(a) General rule
If -
(1) a partnership has effectively connected taxable income for
any taxable year, and
(2) any portion of such income is allocable under section 704
to a foreign partner,
such partnership shall pay a withholding tax under this section at
such time and in such manner as the Secretary shall by regulations
prescribe.
(b) Amount of withholding tax
(1) In general
The amount of the withholding tax payable by any partnership
under subsection (a) shall be equal to the applicable percentage
of the effectively connected taxable income of the partnership
which is allocable under section 704 to foreign partners.
(2) Applicable percentage
For purposes of paragraph (1), the term "applicable percentage"
means -
(A) the highest rate of tax specified in section 1 in the
case of the portion of the effectively connected taxable income
which is allocable under section 704 to foreign partners who
are not corporations, and
(B) the highest rate of tax specified in section 11(b)(1) in
the case of the portion of the effectively connected taxable
income which is allocable under section 704 to foreign partners
which are corporations.
(c) Effectively connected taxable income
For purposes of this section, the term "effectively connected
taxable income" means the taxable income of the partnership which
is effectively connected (or treated as effectively connected) with
the conduct of a trade or business in the United States computed
with the following adjustments:
(1) Paragraph (1) of section 703(a) shall not apply.
(2) The partnership shall be allowed a deduction for depletion
with respect to oil and gas wells but the amount of such
deduction shall be determined without regard to sections 613 and
613A.
(3) There shall not be taken into account any item of income,
gain, loss, or deduction to the extent allocable under section
704 to any partner who is not a foreign partner.
(d) Treatment of foreign partners
(1) Allowance of credit
Each foreign partner of a partnership shall be allowed a credit
under section 33 for such partner's share of the withholding tax
paid by the partnership under this section. Such credit shall be
allowed for the partner's taxable year in which (or with which)
the partnership taxable year (for which such tax was paid) ends.
(2) Credit treated as distributed to partner
Except as provided in regulations, a foreign partner's share of
any withholding tax paid by the partnership under this section
shall be treated as distributed to such partner by such
partnership on the earlier of -
(A) the day on which such tax was paid by the partnership, or
(B) the last day of the partnership's taxable year for which
such tax was paid.
(e) Foreign partner
For purposes of this section, the term "foreign partner" means
any partner who is not a United States person.
(f) Regulations
The Secretary shall prescribe such regulations as may be
necessary to carry out the purposes of this section, including -
(1) regulations providing for the application of this section
in the case of publicly traded partnerships, and
(2) regulations providing -
(A) that, for purposes of section 6655, the withholding tax
imposed under this section shall be treated as a tax imposed by
section 11 and any partnership required to pay such tax shall
be treated as a corporation, and
(B) appropriate adjustments in applying section 6655 with
respect to such withholding tax.
-SOURCE-
(Added Pub. L. 99-514, title XII, Sec. 1246(a), Oct. 22, 1986, 100
Stat. 2582; amended Pub. L. 100-647, title I, Sec. 1012(s)(1)(A),
Nov. 10, 1988, 102 Stat. 3526; Pub. L. 101-239, title VII, Sec.
7811(i)(6), Dec. 19, 1989, 103 Stat. 2410.)
-MISC1-
AMENDMENTS
1989 - Subsec. (b)(2)(B). Pub. L. 101-239, Sec. 7811(i)(6)(A),
substituted "section 11(b)(1)" for "section 11(b)".
Subsec. (d)(2). Pub. L. 101-239, Sec. 7811(i)(6)(B), amended par.
(2) generally. Prior to amendment, par. (2) read as follows: "A
foreign partner's share of any withholding tax paid by the
partnership under this section shall be treated as distributed to
such partner by such partnership on the last day of the
partnership's taxable year (for which such tax was paid)."
Subsec. (f). Pub. L. 101-239, Sec. 7811(i)(6)(C), amended subsec.
(f) generally. Prior to amendment, subsec. (f) read as follows:
"The Secretary shall prescribe such regulations as may be necessary
to carry out the purposes of this section, including regulations
providing for the application of this section in the case of
publicly traded partnerships."
1988 - Pub. L. 100-647 amended section generally, substituting
provisions relating to withholding tax on foreign partners' share
of effectively connected income for provisions which related to
withholding tax on amounts paid by partnerships to foreign
partners.
EFFECTIVE DATE OF 1989 AMENDMENT
Amendment by Pub. L. 101-239 effective, except as otherwise
provided, as if included in the provision of the Technical and
Miscellaneous Revenue Act of 1988, Pub. L. 100-647, to which such
amendment relates, see section 7817 of Pub. L. 101-239, set out as
a note under section 1 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Section 1012(s)(1)(D) of Pub. L. 100-647 provided that: "The
amendments made by this paragraph [amending sections 1446 and 6401
of this title] shall apply to taxable years beginning after
December 31, 1987. No amount shall be required to be deducted and
withheld under section 1446 of the 1986 Code (as in effect before
the amendment made by subparagraph (A))."
EFFECTIVE DATE
Section 1246(d) of Pub. L. 99-514 provided that: "The amendment
made by this section [enacting this section and amending section
6401 of this title] shall apply to distributions after December 31,
1987 (or, if earlier, the effective date (which shall not be
earlier than January 1, 1987) of the initial regulations issued
under section 1446 of the Internal Revenue Code of 1986 as added by
this section)."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 6401 of this title; title
48 section 1421i.
-FOOTNOTE-
(!1) So in original. Probably should be followed by "of".
-End-
-CITE-
26 USC Subchapter B - Application of Withholding
Provisions 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 3 - WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN
CORPORATIONS
Subchapter B - Application of Withholding Provisions
-HEAD-
SUBCHAPTER B - APPLICATION OF WITHHOLDING PROVISIONS
-MISC1-
Sec.
1461. Liability for withheld tax.
1462. Withheld tax as credit to recipient of income.
1463. Tax paid by recipient of income.
1464. Refunds and credits with respect to withheld tax.
[1465. Repealed.]
PRIOR PROVISIONS
A prior subchapter B, consisting of section 1451, acts Aug. 16,
1954, ch. 736, 68A Stat. 359; Oct. 4, 1976, Pub. L. 94-455, title
XIX, Sec. 1906(b)(13)(A), 90 Stat. 1834, related to tax-free
covenant bonds, prior to repeal by Pub. L. 98-369, div. A, title
IV, Sec. 474(r)(29)(A), July 18, 1984, 98 Stat. 844, which repeal
was not applicable with respect to obligations issued before Jan.
1, 1984, pursuant to section 475(b) of Pub. L. 98-369, set out as
an Effective Date of 1984 Amendment note under section 33 of this
title.
AMENDMENTS
1986 - Pub. L. 99-514, title XVIII, Sec. 1899A(73), Oct. 22,
1986, 100 Stat. 2963, substituted "Liability for withheld tax" for
"Return and payment of withheld tax" in item 1461.
1984 - Pub. L. 98-369, div. A, title IV, Sec. 474(r)(29)(A), July
18, 1984, 98 Stat. 844, redesignated subchapter C as B, and struck
out former subchapter B which related to tax-free covenant bonds.
1976 - Pub. L. 94-455, title XIX, Sec. 1901(b)(41), Oct. 4, 1976,
90 Stat. 1803, struck out item 1465 "Definition of withholding
agent".
-End-
-CITE-
26 USC Sec. 1451 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 3 - WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN
CORPORATIONS
Subchapter B - Application of Withholding Provisions
-HEAD-
[Sec. 1451. Repealed. Pub. L. 98-369, div. A, title IV, Sec.
474(r)(29)(A), July 18, 1984, 98 Stat. 844]
-MISC1-
Section, acts Aug. 16, 1954, ch. 736, 68A Stat. 359; Oct. 4,
1976, Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), 90 Stat.
1834, related to tax-free covenant bonds. The repeal was not
applicable with respect to obligations issued before Jan. 1, 1984,
pursuant to section 475(b) of Pub. L. 98-369, set out as an
Effective Date of 1984 Amendment note under section 33 of this
title.
-End-
-CITE-
26 USC Sec. 1461 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 3 - WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN
CORPORATIONS
Subchapter B - Application of Withholding Provisions
-HEAD-
Sec. 1461. Liability for withheld tax
-STATUTE-
Every person required to deduct and withhold any tax under this
chapter is hereby made liable for such tax and is hereby
indemnified against the claims and demands of any person for the
amount of any payments made in accordance with the provisions of
this chapter.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 360; Pub. L. 89-809, title I,
Sec. 103(i), Nov. 13, 1966, 80 Stat. 1554.)
-MISC1-
AMENDMENTS
1966 - Pub. L. 89-809 struck out requirement that persons
required to deduct and withhold any tax under this chapter make
return thereof on or before March 15 of each year and pay the tax
to the officer designated in section 6151, and substituted
"Liability for withheld tax" for "Return and payment of withheld
tax" in section catchline.
EFFECTIVE DATE OF 1966 AMENDMENT
Amendment by Pub. L. 89-809 applicable with respect to payments
occurring after Dec. 31, 1966, see section 103(n)(3) of Pub. L.
89-809, set out as a note under section 871 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 7701 of this title.
-End-
-CITE-
26 USC Sec. 1462 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 3 - WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN
CORPORATIONS
Subchapter B - Application of Withholding Provisions
-HEAD-
Sec. 1462. Withheld tax as credit to recipient of income
-STATUTE-
Income on which any tax is required to be withheld at the source
under this chapter shall be included in the return of the recipient
of such income, but any amount of tax so withheld shall be credited
against the amount of income tax as computed in such return.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 360.)
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 6513 of this title.
-End-
-CITE-
26 USC Sec. 1463 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 3 - WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN
CORPORATIONS
Subchapter B - Application of Withholding Provisions
-HEAD-
Sec. 1463. Tax paid by recipient of income
-STATUTE-
If -
(1) any person, in violation of the provisions of this chapter,
fails to deduct and withhold any tax under this chapter, and
(2) thereafter the tax against which such tax may be credited
is paid,
the tax so required to be deducted and withheld shall not be
collected from such person; but this section shall in no case
relieve such person from liability for interest or any penalties or
additions to the tax otherwise applicable in respect of such
failure to deduct and withhold.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 360; Pub. L. 101-239, title VII,
Sec. 7743(a), Dec. 19, 1989, 103 Stat. 2406; Pub. L. 104-188, title
I, Sec. 1704(t)(9), Aug. 20, 1996, 110 Stat. 1887.)
-MISC1-
AMENDMENTS
1996 - Pub. L. 104-188 substituted "this section" for "this
subsection".
1989 - Pub. L. 101-239 amended section generally. Prior to
amendment, section read as follows: "If any tax required under this
chapter to be deducted and withheld is paid by the recipient of the
income, it shall not be re-collected from the withholding agent;
nor in cases in which the tax is so paid shall any penalty be
imposed on or collected from the recipient of the income or the
withholding agent for failure to return or pay the same, unless
such failure was fraudulent and for the purpose of evading
payment."
EFFECTIVE DATE OF 1989 AMENDMENT
Section 7743(b) of Pub. L. 101-239 provided that: "The amendment
made by subsection (a) [amending this section] shall apply to
failures after December 31, 1989."
-End-
-CITE-
26 USC Sec. 1464 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 3 - WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN
CORPORATIONS
Subchapter B - Application of Withholding Provisions
-HEAD-
Sec. 1464. Refunds and credits with respect to withheld tax
-STATUTE-
Where there has been an overpayment of tax under this chapter,
any refund or credit made under chapter 65 shall be made to the
withholding agent unless the amount of such tax was actually
withheld by the withholding agent.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 360.)
-End-
-CITE-
26 USC Sec. 1465 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 3 - WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN
CORPORATIONS
Subchapter B - Application of Withholding Provisions
-HEAD-
[Sec. 1465. Repealed. Pub. L. 94-455, title XIX, Sec. 1901(a)(156),
Oct. 4, 1976, 90 Stat. 1789]
-MISC1-
Section, act Aug. 16, 1954, ch. 736, 68A Stat. 360, defined
withholding agent.
EFFECTIVE DATE OF REPEAL
Repeal applicable with respect to taxable years beginning after
Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as an
Effective Date of 1976 Amendment note under section 2 of this
title.
-End-
-CITE-
26 USC [CHAPTER 4 - REPEALED] 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
[CHAPTER 4 - REPEALED]
-HEAD-
[CHAPTER 4 - REPEALED]
-End-
-CITE-
26 USC Sec. 1471 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
[CHAPTER 4 - REPEALED]
-HEAD-
[Sec. 1471. Repealed. Pub. L. 94-455, title XIX, Sec.
1901(b)(13)(A), Oct. 4, 1976, 90 Stat. 1840]
-MISC1-
Section, act Aug. 16, 1954, ch. 736, 68A Stat. 361, related to
recovery of excessive profits on government contracts.
SAVINGS PROVISION
Section 1951(b)(13)(B) of Pub. L. 94-455 provided that: "If the
amount of profit required to be paid into the Treasury under
section 2382 or 7300 of title 10, United States Code is not
voluntarily paid, the Secretary of the Treasury or his delegate
shall collect the same under the methods employed to collect taxes
under subtitle A [this subtitle]. All provisions of law (including
penalties) applicable with respect to such taxes and not
inconsistent with section 2382 or 7300 of title 10 of such Code,
shall apply with respect to the assessment, collection, or payment
of excess profits to the Treasury as provided in the preceding
sentence, and to refunds by the Treasury of overpayments of excess
profits into the Treasury."
-End-
-CITE-
26 USC Secs. 1481, 1482 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
[CHAPTER 4 - REPEALED]
-HEAD-
[Secs. 1481, 1482. Repealed. Pub. L. 101-508, title XI, Sec.
11801(a)(37), Nov. 5, 1990, 104 Stat. 1388-521]
-MISC1-
Section 1481, acts Aug. 16, 1954, ch. 736, 68A Stat. 362; June
21, 1965, Pub. L. 89-44, title VIII, Sec. 809(d)(5)(B), 79 Stat.
168; Oct. 4, 1976, Pub. L. 94-455, title XIX, Secs. 1901(a)(157),
1906(b)(13)(A), 1951(b)(14)(A), 90 Stat. 1789, 1834, 1840, related
to mitigation of effect of renegotiation of government contracts.
Section 1482, added Pub. L. 85-866, title I, Sec. 62(a), Sept. 2,
1958, 72 Stat. 1648, related to readjustment for repayments made
pursuant to price redeterminations.
SAVINGS PROVISION
For provisions that nothing in repeal by Pub. L. 101-508 be
construed to affect treatment of certain transactions occurring,
property acquired, or items of income, loss, deduction, or credit
taken into account prior to Nov. 5, 1990, for purposes of
determining liability for tax for periods ending after Nov. 5,
1990, see section 11821(b) of Pub. L. 101-508, set out as a note
under section 29 of this title.
-End-
-CITE-
26 USC [CHAPTER 5 - REPEALED] 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
[CHAPTER 5 - REPEALED]
-HEAD-
[CHAPTER 5 - REPEALED]
-End-
-CITE-
26 USC Secs. 1491, 1492 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
[CHAPTER 5 - REPEALED]
-HEAD-
[Secs. 1491, 1492. Repealed. Pub. L. 105-34, title XI, Sec.
1131(a), Aug. 5, 1997, 111 Stat. 978]
-MISC1-
Section 1491, acts Aug. 16, 1954, ch. 736, 68A Stat. 365; Oct. 4,
1976, Pub. L. 94-455, title X, Sec. 1015(a), 90 Stat. 1617; Nov. 6,
1978, Pub. L. 95-600, title VII, Sec. 701(u)(14)(A), 92 Stat. 2919;
Aug. 20, 1996, Pub. L. 104-188, title I, Sec. 1907(b)(1), 110 Stat.
1916, imposed tax on transfers to avoid income tax.
Section 1492, acts Aug. 16, 1954, ch. 736, 68A Stat. 365; Jan.
12, 1971, Pub. L. 91-681, Sec. 1(b), 84 Stat. 2066; Oct. 4, 1976,
Pub. L. 94-455, title X, Sec. 1015(b), title XIX, Sec.
1906(b)(13)(A), 90 Stat. 1618, 1834; Nov. 6, 1978, Pub. L. 95-600,
title VII, Sec. 701(u)(14)(B), 92 Stat. 2919; July 18, 1984, Pub.
L. 98-369, div. A, title I, Sec. 131(f)(1), 98 Stat. 665, related
to nontaxable transfers.
-End-
-CITE-
26 USC Sec. 1493 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
[CHAPTER 5 - REPEALED]
-HEAD-
[Sec. 1493. Repealed. Pub. L. 89-809, title I, Sec. 103(l)(2), Nov.
13, 1966, 80 Stat. 1554]
-MISC1-
Section, act Aug. 16, 1954, ch. 736, 68A Stat. 365, defined
foreign trust.
EFFECTIVE DATE OF REPEAL
Repeal applicable with respect to taxable years beginning after
Dec. 31, 1966, see section 103(n)(1) of Pub. L. 89-809, set out as
an Effective Date of 1966 Amendment note under section 871 of this
title.
-End-
-CITE-
26 USC Sec. 1494 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
[CHAPTER 5 - REPEALED]
-HEAD-
[Sec. 1494. Repealed. Pub. L. 105-34, title XI, Sec. 1131(a), Aug.
5, 1997, 111 Stat. 978]
-MISC1-
Section, acts Aug. 16, 1954, ch. 736, 68A Stat. 365; Oct. 4,
1976, Pub. L. 94-455, title XIX, Sec. 1906 (b)(13)(A), 90 Stat.
1834; July 18, 1984, Pub. L. 98-369, div. A, title I, Sec.
131(f)(2), 98 Stat. 665; Aug. 20, 1996, Pub. L. 104-188, title I,
Sec. 1902(a), 110 Stat. 1909, provided for payment and collection
of the tax imposed under section 1491 of this title.
-End-
|
' |
about irs efile - about us - terms of use - privacy - contact us - irs tax code - state tax links - Tax Glossary
© 2008 RETURN-TAX.COM All Rights Reserved.
